AGENDA #9
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Consideration of Conceptual Master Plans for Town Parking Lots 2 and 5 and Wallace Deck Sites
DATE: June 14, 2004
The attached Resolution A would adopt building program options and conceptual master plans illustrating the Council’s preferences for developing key downtown sites, including Town Parking Lots 2 and 5, space above the Town-owned Wallace parking deck and adjoining property behind the Old Post Office.
The purpose of the master plans is not to specify architecture, but to identify the Council’s expectations for developing the sites in terms of key issues such as building scale and use, arrangement of buildings and public spaces on the sites, and parking. Please see Attachment 1 for a summary of the concepts prepared by HKS, Inc.
Resolution B would authorize the project to proceed to the next phase – analysis of the financial feasibility of the building program.
BACKGROUND
Town Parking Lot 2, at East Rosemary and South Columbia Streets, and Town Parking Lot 5, on West Franklin and Church Streets, are identified in the Downtown Small Area Plan as development “opportunity areas.”
The Plan states that developing Town Parking Lot 5 is an opportunity to bring pedestrian activity to this section of West Franklin Street by forming a “visual bridge” linking the developed, pedestrian-friendly sections of East and West Franklin Street. The Plan states that development of Lot 2 could be comprised of a “combination of land uses, a parking deck, or possibly a transit transfer center,” and that development “should bring closure to the building frontages at this intersection.”
In February and March 2002, the Town hosted public design workshops focusing on Lots 2 and 5 as well as other key downtown properties. More than 100 people attended the workshop, which generated ideas for Lots 2 and 5 that included a combination of mixed-use buildings, significant public space, and structured parking.
In June 2002, the Council formed a Council Committee on Lots 2 and 5 to consider options for proceeding with a project to develop the two parking lots. On February 24, 2003, the Town Council adopted principles and priorities recommended by the Council Committee on Lots 2 and 5 (see Attachment 2).
In November 2003, with Council authorization, the Town contracted with John Stainback of Stainback Public/Private Real Estate who since has been working with the Council and staff on the project (see Attachment 3 for a summary of the predevelopment process). Should the Council wish to proceed with future steps, Mr. Stainback will help solicit and analyze developer proposals and negotiate and execute a development agreement. The Council has the option of deciding whether to proceed after each phase.
Market Demand Study (Part 1A of Contract)
On March 22, 2004, the Council held a public forum on the findings of a market study by Economic Research Associates which forecast strong demand for apartments and retail space. The market study results were used as a basis for establishing a range of uses and amount of development specified in the building program adopted by the Council on April 14, 2004 (see Attachment 4). On April 14, the Council authorized proceeding with the development of master plans for both sites.
Development of Master Plans for Both Sites (Part 1B of Contract)
The building program ranges of uses and square footage adopted by the Council formed the basis for the development of the master plan concepts. HKS, Inc., a Dallas architecture firm, has developed the site plans and illustrations, working as a subcontractor for Mr. Stainback.
HKS initially developed five scenarios each for Lot 2 and Lot 5; these scenarios illustrated the potential arrangement of buildings, public space, and parking, as well as options for building a downtown transit transfer center. Also included in the concepts is the potential development of a parking garage on the RBC-Centura Bank site on the northeast corner of East Rosemary and Columbia Streets. The Town has been in contact with bank officials about the bank’s potential involvement in the project.
The Committee reviewed the concepts on May 10th and 12th. The firm subsequently revised the concepts, incorporating Council Committee input, for the May 24th Council Committee meeting and the Council’s public forum.
On May 12th, the Council Committee recommended that the project scope be expanded to also include the potential addition of development atop the Wallace parking deck site and at the Town-owned parcel east of the deck at Henderson and East Rosemary Streets. The Council on May 24th approved a budget ordinance amendment allocating funds to pay for expanding the HKS scope of work to include the additional sites.
On May 26th, the Council Committee reached consensus on key decision points related to scale, public space, parking, the transit transfer center and other issues.
Cost Estimation and Financial Analysis (Part 1C of Contract)
After completion of the master plans, the next step to be considered by the Council would be a financial feasibility analysis of the concepts, completed by Stainback Public/Private Real Estate.
DISCUSSION
The attached memorandum from HKS, Inc. (see Attachment 1) includes a summary of the conceptual master plans which the firm has revised to incorporate input from the Council Committee and the May 24th public forum.
Council Committee Recommendations
On May 26th, the Council Committee reached consensus on a number of key issues which are described below.
Preferred Development Scenarios
· Parking Lot #5: a large outdoor public space, with retail and housing in four- to six-story-tall buildings situated along Franklin, Rosemary and Church Streets and the eastern property line. An opening into the interior public space is shown between the Franklin Street buildings; a small plaza leading into the interior space is shown at Church and Rosemary Streets. Also depicted is a one-story retail building in the interior plaza. Parking would be provided in an underground parking facility.
· Parking Lot #2: four- to six-story tall buildings with housing and retail; the retail space fronts a large outdoor plaza extending east from Columbia Street and north from a pedestrian alley off Franklin Street. The concept includes an under-grade transit transfer center.
· Wallace Parking Deck and Adjoining Site: The preferred option for the Wallace Parking Deck and the adjoining site at Henderson and East Rosemary Streets includes four-story residential buildings above the Wallace parking deck, with public plazas on the Rosemary Street side, and a building with housing and retail at the Henderson Street site.
Parking Standards
· Residential parking demand should be calculated based on 1.5 spaces per dwelling unit. The Town’s current standard for the Town Center-2 zoning district is one parking space per dwelling unit.
· A 25% shared parking ratio should be applied for commercial uses. The parking ratio would reduce the Town’s required parking of one space per 400 square feet of commercial space by 25 percent.
Parking Supply
· Lot #5: provide parking in an underground parking garage containing up to three-levels, with each level potentially providing 205 spaces.
· Lot #2: parking needed for the development of Lot #2 would be provided in an above-grade parking deck on the RBC-Centura Bank site, if available. The Committee’s preference is a six-level parking garage with approximately 60 spaces per level; the slope on the site would reduce the scale of the structure as seen from Rosemary Street. A Committee member asked that HKS consider options for including retail space in the deck fronting Rosemary Street.
· Wallace Parking Deck and Adjoining Site: Extend the Wallace parking deck to the east to Henderson Street, if feasible. Existing parking at the Wallace deck would be used to meet some or all of the parking demand associated with the development of the sites. Replacement parking for the public would need to be provided off-site, such as at a deck at the RBC-Centura site.
Scale
· Floor-area ratios above existing Town standards for Town Center-2 zoning would be acceptable.
Affordable Housing
· At least 20% of the total housing units should be affordable to households earning 80% and below of the area median income; 5% of the total should be affordable to those households at 50% and below of the area median income. The Committee stated that the units should be dispersed throughout the development sites. The Committee endorsed a general guideline that the more affordable housing is provided, the higher the floor area ratios could be.
· There is to be a certain amount of flexibility on the distribution of affordable housing on these sites, but the Town will determine the acceptable range for the development.
Other Issues
· If possible, development at Henderson and Rosemary Streets should save the magnolia tree, but allow for flexibility in the design responses.
· Development of the sites should enhance pedestrian access and connectivity among the sites, at varying levels of the sites, and to Franklin and Rosemary Streets wherever possible.
· The Committee supported the idea of outlining its top priorities for the sites and developing design guidelines as a way to achieve flexibility and enhance creativity in the request for proposal process.
KEY ISSUES FROM PUBLIC FORUM
Following are key issues raised at the May 24, 2004, Public Forum on the initial draft conceptual master plans (see also correspondence received, Attachment 5):
· Consider requiring the use of renewable energy and green building technologies in any buildings built on the sites.
Comment: We recommend the Council take renewable energy and green building principles into account during future stages of the project.
· Include significant public space as part of the development of Lot #5, including performance space. Be careful not to create open space that is too large as to be unwelcoming to the public.
Comment: The Council Committee and Council have discussed this issue during their planning sessions on the project. Including significant public space in the project is addressed in the materials of this report.
· The Transportation Board recommends the below-grade transit center concept depicted for Lot #2.
Comment: The Council Committee on Lot 2 and 5 has recommended to Council including a below-grade transit transfer center in the design for Lot 2.
· A Council Member requested information on public spaces in Chapel Hill as they compare with the development concepts in order to help understand the size of the proposed spaces.
Comment: Staff has prepared a comparison of existing downtown open spaces and the dimensions of Lot #5 (see Attachment 6).
· Council members stressed the importance of soliciting and addressing the concerns of Northside residents as the project moves forward.
Comment: Issues affecting the neighborhood include security, noise, lighting, parking, and traffic from the project. The Council Committee has discussed these issues in its planning for the project. These will continue to be design issues should the Council authorize proceeding with future phases of the project.
The building program options are described in greater detail in Attachment 1 submitted by HKS, Inc, “Recommended Development Options: Design Development Program for Lot #5, Lot #2, and the Extended Wallace Deck.” Following are summaries of the building program options specified in Resolution A. Option 1 includes the RBC site as part of the development; Option 2 assumes the RBC site would not be available.
Option 1: With RBC Site
|
|
Lot #5 |
Lot #2 |
Wallace Deck |
Total |
|
Residential |
160,600 sf |
84,800 sf |
136,400 sf |
381,800 sf |
|
Residential (DU’s) |
128 DU’s |
68 DU’s |
109 DU’s |
305 DU’s |
|
Retail/Dining/ Entertainment |
31,500 sf |
20,100 sf |
4,000 sf |
55,600 sf |
|
Open Space/Plaza |
28,300 sf |
14,600 sf |
12,200 sf |
55,100 sf |
|
FAR |
2.55 FAR |
2.19 FAR |
2.66 FAR |
2.48 FAR |
Option 1 includes a constructing a parking deck at the RBC site at the northeast corner of North Columbia and East Rosemary Streets.
The building program’s parking structures suggested at the RBC site and Lot #5 would provide a sufficient number of spaces to replace the public parking at the Wallace parking deck that would be set aside to meet the new residential and non-residential parking demands associated with development at the deck and adjoining property.
In addition to the uses described in the table above, Option 1 includes an under-grade transit transfer center at Lot #2.
Option 2- Without RBC Site
Option 2 would include the same building program described above for Option 1. However, Option 2 is based on the assumption that the RBC site would not be available for construction of a parking structure. The parking deck at Lot #5 would provide a surplus of spaces over the parking demand and replacement of existing parking at the site. A two-level or three-level below-grade parking deck at Lot #2, providing approximately 210 to 315 spaces, would be built in place of the transit transfer center included in Option 1. The Transit Transfer Center would relocate to the on-street location at the corner of Franklin and Columbia Streets previously discussed by the Council Committee.
(Note: Staff is continuing its review of these options and may have additional comments at the Council Committee and Council meeting of June 14, 2004.)
DOWNTOWN SMALL AREA PLANNING CONTEXT
The conceptual master plans under consideration tonight would implement a key strategy in the Downtown Small Area Plan – the development of Lots 2 and 5, which are identified in the plan as “opportunity areas” for development initiatives.
The conceptual master plan proposed for Lot 5 would implement the Downtown Small Area Plan recommendation to encourage development that would bridge the pedestrian scale of the 100 Block of East Franklin and the western areas of West Franklin Street. The Plan envisioned “a scale similar to the 100 Block of East Franklin Street – two to three stories along Franklin Street, designed in a manner to be compatible with existing small-scale storefront development,” with greater intensities located in the interior of the site. (p.43) The scale contemplated in the conceptual master plan represents a departure from the Downtown Design Guidelines, adopted as a component of the Downtown Small Area Plan, which generally recommends building heights of no more than two stories at the property line.
The conceptual master plan proposed for Lot 2 is compatible with the Downtown Small Area Plan recommendation to develop the site for a combination of land uses, a parking deck, or possibly a transit transfer center. However, the scale of the concept plan is also greater than the Downtown Small Area Plan idea of the site having potential for improving the street façade with a mini-plaza or a small building.
We also note that the Downtown Small Area Plan includes designating areas for preservation as well as for development. In this regard, the RBC-Centura building on East Rosemary Street and the lot behind the Old Post Office at Rosemary and Henderson Street are shown in the preservation areas.
Should the Council pursue development of the sites at the intensities depicted in the conceptual master plans, the Town is likely to receive requests in the future to adjust the floor area ratio standards for development of other downtown sites. The Town Council may also want to consider revisiting the Downtown Small Area Plan should the Council pursue denser development for Downtown than recommended in the Plan.
NEXT STEPS
Should the Council approve conceptual master plans and give the authorization to proceed, Mr. Stainback over the summer will analyze the financial feasibility of the building program as illustrated in the approved master plans. The project schedule contemplates the Council scheduling a public forum on Monday, September 13, 2004, on development scenarios and finance plans developed by Mr. Stainback (see Attachments 7 and 8). The Council would then decide whether to proceed with soliciting developers through a Request for Proposal process.
Attachment 9 contains draft sample design guidelines provided to the Council by HKS, Inc. for possible use during the developer solicitation stage.
Funds for the next phase are included in the Manager’s Recommended Budget for 2004-05 scheduled for adoption tonight. The funds would be available effective July 1, 2004. The funds are sufficient to complete the financial analysis and the following two phases: Part 2, management of the developer solicitation and selection process, and Part 3, development agreement negotiations.
RECOMMENDATION
We recommend the Council adopt Resolution A, which would adopt a building program and conceptual master plans illustrating the Council’s preferences for developing key downtown sites, including Town Parking Lots 2 and 5, space above the Town-owned Wallace parking deck and adjoining property behind the Old Post Office.
We also recommend the Council adopt Resolution B, which would authorize the project to proceed to the next phase – analysis of the financial feasibility of the building program. The resolution would also call a public forum for Monday September 13, 2004 to obtain public comment on the financial analysis and the request for proposal process.
ATTACHMENTS
2. Principles and Priorities for Use of Parking Lots 2 and 5 (p. 30).
3. Predevelopment Process Flow-Chart (p. 34).
5. Correspondence Received from the Public (p. 37).
6. Downtown Public and Semi-Public Open Spaces (p. 53).
8. Project Schedule (Part 1C) (p. 63).
9. HKS, Inc., Draft Urban Design Guidelines, June 14, 2004 (p. 64).
RESOLUTION A
A RESOLUTION APPROVING CONCEPTUAL MASTER PLANS FOR THE DEVELOPMENT OF TOWN PARKING LOTS 2 AND 5 AND OTHER IDENTIFIED SITES (2004-06-14/R-23a)
WHEREAS, on April 14, 2004, the Council approved a preliminary land, building, and infrastructure program identifying a range of uses to be included in the development of conceptual master plans for Lots 2 and 5; and
WHEREAS, the Consultant, Stainback Public/Private Real Estate, has commissioned the development of conceptual master plans by HKS, Inc., for the development of Town Parking Lots 2 and 5; and
WHEREAS, the Council Committee on Lots 2 and 5 expanded the scope of the project to include development concepts on additional properties, including the Wallace parking deck and adjoining property, and the RBC-Centura bank site; and
WHEREAS, on May 24, 2004, the Council held a public forum on preliminary master plan concepts developed by HKS;
NOW, THEREFORE BE IT RESOLVED by the Council that the Council approves the conceptual master plans as presented to the Council on June 14, 2004, as generally described in Attachment 1, “Recommended Development Options: Design Development Program for Lot #5, Lot #2, and the Extended Wallace Deck,” with the following uses and range of square footage to be included in the next phase of the project, cost estimation and financial feasibility analysis:
Lot #5
· Market rate/affordable housing 160,600 square feet (128 dwelling units)
· Retail/dining/entertainment space 31,500 square feet
· Open space/plaza area 28,300 square feet
· Floor-Area Ratio 2.55
· Parking demand 425 spaces
· Parking supplied 615 spaces
Lot #2
· Market rate/affordable housing 84,800 square feet (68 dwelling units)
· Retail/dining/entertainment space 20,100 square feet
· Open space/plaza area 14,600 square feet
· Floor-Area Ratio 2.19
· Parking demand 241 spaces
· Parking supplied 360 spaces
· Below-Grade Space at Lot #2 – Reserved for Transit Transfer Center
Extended Wallace Deck
· Market rate/affordable housing 136,400 square feet (109 dwelling units)
· Retail/dining/entertainment space 4,000 square feet
· Open space/plaza area 12,200 square feet
· Floor-Area Ratio 2.66
· Parking demand 492 spaces
· Parking supplied 400 spaces
Total: All Sites
· Market rate/affordable housing 381,800 square feet (305 dwelling units)
· Retail/dining/entertainment space 55,600 square feet
· Open space/plaza area 55,100 square feet
· Floor-Area Ratio 2.48
· Parking demand 1,158 spaces
· Parking supplied 1,375 spaces
BE IT FURTHER RESOLVED that the Recommended Development Options described herein are intended to be a general conceptual guide for use by the consultant and the Town Council in conducting the next stage of determining the financial feasibility of the building program and are not intended to establish exact program requirements for future planning phases for the development of Parking Lots 2 and 5 and the Wallace Parking Deck property.
This the 14th day of June, 2004.
RESOLUTION B
A RESOLUTION AUTHORIZING PROCEEDING WITH PART 1C, FINANCIAL FEASIBILITY ANALYSIS FOR THE DEVELOPMENT OF PARKING LOTS 2 AND 5 (2004-06-14/R-23b)
WHEREAS, the Comprehensive Plan and Downtown Small Area Plan identify Town Parking Lots 2 and 5 as key redevelopment sites; and
WHEREAS, the Town Council has established principles and priorities for development of Town Parking Lots 2 and 5; and
WHEREAS, the Council on February 24, 2003, authorized the Town Manager to develop a request for proposals for economic development consultant services to help plan and manage the options for proceeding with the development of Town Parking Lots 2 and 5 and help represent the Town’s interests in any development agreement; and
WHEREAS, the Council on October 27, 2003, authorized the Town Manager to execute a contract with Stainback Public/Private Real Estate; and
WHEREAS, the Consultant has completed Parts 1A and 1B of the contract, completion of a Market Analysis Study and Conceptual Master Plans;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to initiate work on Phase 1C of the contract with Stainback Public/Private Real Estate, Cost Estimation and Financial Analysis, based substantially on the terms in the attached Work Statement from Contract for Consultant Services authorized by the Council on October 27, 2003.
BE IT FURTHER RESOLVED that the Council calls a public forum for Monday, September 13, 2004, at 7 p.m. in the Council Chamber, Town Hall, 306 North Columbia Street to obtain public comment on the financial analysis and the request for proposal process.
This the 14th day of June, 2004.